- Crypto billionaire Sam Bankman-Fried announced that he owns about 56.3. million shares of Robinhood Markets.
- News of his 7.6% stake in Robinhood sent shares of the trading platform up over 30% in late trade.
- Bankman-Fried is the founder and CEO of cryptocurrency exchange FTX.
Robinhood Markets shares were up more than 30% in late trade after crypto billionaire Sam Bankman-Fried announced a 7.6% stake in the company
Bankman-Fried, through his investment firm Emergent Fidelity Technologies, acquired about 56.3 million shares in the Robinhood markets, according to a regulatory filing with the US Securities and Exchange Commission (SEC) on Thursday.
That makes the 30-year-old’s stake worth about $482 million based on Robinhood’s closing price of $8.56. Bankman-Fried paid approximately $648.3 million for the shares, according to the SEC filing.
Bankman-Fried is the founder and CEO of cryptocurrency exchange FTX. He has a
$11 billion according to the Bloomberg Billionaires Index.
California-based Robinhood was founded in 2013 but burst into the limelight last year due to a meme stock craze. It had 22.7 million users at the end of 2021 — an 81% year-over-year increase, the company said when it announced its full-year results in January.
The commission-free trading platform lost $3.7 billion in 2021. The stock, which debuted at $38 per share in July 2021, is down over 70% since its IPO. Revenue for the first quarter of 2022 fell 43% year over year as trading activity slowed, the company said in April. It has flagged crypto as a growth area.
Robinhood’s stock price closed Thursday up 5.03% at $8.56. They were last up about 24% to $10.60 a share in after-hours trading after rising as much as 37% to $11.70.